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Uganda Judgment

Commercial Court of Uganda

Javelin Ltd v Zimba Logistics and Hardware Ltd and Anor (Civil Suit No. 865 of 2020) [2021] UGCommC 94 (22 March 2021)

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01

Holding and result

The evidence on record, including the supply of goods on credit, dishonoured cheques, and an unfulfilled undertaking to pay, establishes the defendants' liability for the debt claimed by the plaintiff. The defendants failed to defend the suit, and their application for leave to appear and defend was dismissed for want of prosecution. The court finds the debt of Ugx 270,272,100/= is due and owing, and the plaintiff is entitled to interest at 24% per annum from the date of default until payment in full, as well as costs of the suit.

Court disposition

Judgment entered for the plaintiff against the defendants jointly and severally.

Orders

  • Defendants to pay the plaintiff Ugx 270,272,100/=
  • Defendants to pay interest at 24% per annum from date of default until payment in full.
  • Defendants to pay costs of the suit.

02

Material facts

Parties

Javelin Limited

Plaintiff

Zimba Logistics & Hardware Limited

Defendant

Aeko Ali Awazi

Defendant

Amounts and remedies

  • Principal Debt: UGX 270,272,100
  • Interest Rate Per Annum: 24

03

Procedural history

  1. Posture

    Civil Suit / Judgment

04

Questions and positions

Legal issues

Party arguments

Applicant
The plaintiff supplied cement and hardware to the defendants on credit, who issued cheques that were dishonoured. Despite notification and a subsequent undertaking by the 2nd defendant to pay in instalments, the outstanding sum remains unpaid. The plaintiff seeks recovery of Ugx 270,272,100/=, interest at 24% per annum from the date of default, and costs.
Respondent
The defendants did not file a defence to the main suit. Their application for leave to appear and defend was dismissed for want of prosecution after repeated failure to attend court and pursue settlement. No substantive arguments were presented.

05

Court’s reasoning

  1. 01

    General principles of contract law and commercial transactions.

    A party who receives goods on credit and fails to pay is liable for the debt.

  2. 02

    Court's discretion under Ugandan law.

    Interest may be awarded on outstanding sums from the date of default until payment in full.

  3. 03

    Civil Procedure Act, Section 27.

    Costs follow the event and are awarded to the successful party.

06

Ratio, limits and disposition

Ratio decidendi

The evidence on record, including the supply of goods on credit, dishonoured cheques, and an unfulfilled undertaking to pay, establishes the defendants' liability for the debt claimed by the plaintiff. The defendants failed to defend the suit, and their application for leave to appear and defend was dismissed for want of prosecution. The court finds the debt of Ugx 270,272,100/= is due and owing, and the plaintiff is entitled to interest at 24% per annum from the date of default until payment in full, as well as costs of the suit.

Court disposition

Judgment entered for the plaintiff against the defendants jointly and severally.

  • Defendants to pay the plaintiff Ugx 270,272,100/=
  • Defendants to pay interest at 24% per annum from date of default until payment in full.
  • Defendants to pay costs of the suit.

Source and reliance status

Commercial Court of Uganda

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Judgment text

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Source document

Commercial Court of Uganda

Judgment

[2021] UGCommC 94

THE REPUBLIC OF UGANDA

IN THE HIGH COURT OF UGANDA AT KAMPALA

[COMMERCIAL DIVISION]

Civil Suit No.865 of 2020

JAVELIN LIMITED:::::::::::::::::::::::::::::::::::::::::::::::::PLAINTIFF

VERSUS

- 1. ZIMBA LOGISTICS & HARDWARE LIMITED - 2. AEKO ALI AWAZI:::::::::::::::::::::::::::::::::::::::::::""DEFENDANTS

BEFORE; HON. JUSTICE DUNCAN GASWAGA

JUDGMENT

This is a judgment on a claim for recovery of a liquidated sum of Ugx 270,272,100/= (Uganda Shillings Two hundred seventy million two hundred seventy two thousand one hundred only) with interest at a rate of 24% from the date of default until payment in full and costs of the suit. The cause of action arose as follows; that between 07/10/2019 and 13/05/2020 the 1st defendant through its managing director the 2nd defendant approached the plaintiff for credit supply arrangement. The plaintiff went ahead to supply to the defendants on credit with the requested cement and its hardware and the same was duly received, however the defendants issued cheques to the plaintiff for payment which were dishonoured. Consequently the defendants were notified and requested to pay to the plaintiff all the outstanding monies but the defendants ignored the same. The 2nd defendant, further in an undertaking on 03rd day of September 2020, agreed to pay all the

outstanding sums in weekly instalments of Ugx 5,000,000/= starting from 09/09/2020 and stated that any breach of the undertaking should be informed to him. The said undertaking was breached by the defendant, leaving the outstanding sum unpaid to date, the reason for the suit.

- [2] It should be noted that the defendants filed M. A. No. 1090 of 2020 for leave to appear and defend which was later on 22/03/2021 dismissed at the instance of the respondent's counsel for want of prosecution when the defendants refused, ignored and or failed to turn up in court. This was after various adjournments (01/03/2021, 11/03/2021, 18/03/2021 and 22/03/2021) with promises from the defendant's Counsel to pursue a settlement. This therefore left the main suit un defended. - [3] <sup>I</sup> have had opportunity once again to peruse the pleadings. <sup>I</sup> find that the evidence on record clearly establishes a debt of Ugx 270,272,100/= (Uganda Shillings Two hundred seventy million two hundred seventy two thousand one hundred shillings) owed by the defendants. The debt is not challenged.

[4] Accordingly, <sup>I</sup> hereby enter judgment against the defendants jointly and severally in the following terms;

a) that the defendants pay to the plaintiff a sum of Ugx 270,272,100/= (Uganda Shillings Two hundred seventy million two hundred seventy-two thousand one hundred shillings)

b) that the defendants pay an interest rate of 24% per annum from date of default until payment in full.

c) costs of the suit.

Dated, signed and delivered at Kampala this 22nd day of March, 2021

Duncan

JUDGE

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Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Civil Procedure Act, Section 27

Legislation

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